How To Motivate Yourself To Save Money Every Month
Anyone can experience emergency financial situations now and then, which is why saving money is essential. A high-paying job or a lucrative business is all well and good, but they are hardly the excuse to go on a mindless spending-spree. The standard of living keeps rising, and with it are the prices that can make or break a budget. Having a personal financial plan will help you make the best out of your income, so you are not left wanting.
How does one manage his finances when saving itself is a task for specific people? It is merely all about knowing your priorities and sticking to them. Blowing off a chunk of your income on unnecessary spending can give you a headache later. When you know you have bills and obligations to pay attention to, you cannot always leave things to chance.
To jumpstart your saving goal every month, here are a couple of things you can do.
- Identify Expenses
Write down all your regular monthly expenses that apply: food, house utilities, car payments, mortgage, insurance, etc. Include the ones you need to pay for only a short period, such as debts that you owe. Knowing how much your total monthly expenses allow you to compare it against your salary every month.
Use a spreadsheet for recording purposes and make copies for the different months of the year. Keeping a history of your expenses will also help you identify a pattern or rise in a specific area that you may or may not have control over.
Incidentally, some bloggers, such as James over dinksfinance are doing a pretty good job of this.
- Set A Financial Goal
Decide on a budget for personal use and add an estimate on how much you will need. After listing your expenses, it’s now time to decide on how much you can allot to your bank account. The bigger, the better. But if your income only allows you little, it is not something to underestimate. A meager amount still grows as long as you continue to set aside some every month.
The same thing applies if you are saving up for a home or a vehicle, or maybe a college fund for you or your kids. Discuss it with your creditors to determine how much you can pay monthly for one or both. Saving up becomes more comfortable when you have something worth it to look forward to.
- Use An App
Do you have a smartphone? If so, then utilize financial technology or fintech. App stores carry a bevy of saving and investing applications of trusted and established banking and companies. Most of these apps are user- and beginner-friendly, so all you have to do is read and tap.
Automation makes things easier as you can link your card or bank accounts and transfer money anytime without leaving your home. If you can, you may also use investment apps to help delegate a fraction of your income for your future. The plus-side is that you won’t be able to withdraw it automatically on a whim when your spending habit kicks in.
Couponing and shopping ideas at DontPayFull may also help you learn to seek and take advantage of bargain deals. If you can have more for less, that’s definitely better.
- Join Saving Challenges
This is a fun way to motivate yourself to set aside money, and they differ in amounts, increments, schedule, and duration. Some challenges go per week instead of on a monthly basis.
Various websites offer printable sticker templates or cards for checking off a hurdle (i.e., $100 in February, then $110 in March). When you are able to see that you are meeting your saving goals, it gives a strong sense of achievement, thus, encouraging you to continue.
There are a couple of good savings challenges on some other blogs you might want to check out.
Saving advice has:
Young Adult Money has a better way to do the 52 week money challenge.
- Allow Yourself Treats
One of the reasons why people stop saving is because of the feeling of self-deprivation. While you must follow your own goal, there is nothing wrong with treating yourself to something useful, such as a favorite food or drink.
It would be best if you keep reminding yourself not to overspend for things that you have no need of but have too much in your life already. You can also set a date or how frequently you can have these treats.
- Seek Help To Keep Up
Let your family or friends know about your plans. You can ask your most trusted sibling or your best friend to help you with accountability. They will be reminding you why you should not be spending an extra $200 on a new pair of shoes or clothing.
Getting your closest people involved in your goals builds a stronger bond with them. It is a plus if you know someone in the banking or financial industry since he or she will be able to lay down some useful insights for you as well as suggest suitable options for you to start.
- Build Your Financial Know-How
Ignorance may be bliss, but not when it comes to money. When you are eager to expand your knowledge beyond saving, you open your life to a world of possibilities and adventures.
There are many saving options that one can take, and they may also come with money-making opportunities. Knowing various tools and utilizing them to your advantage makes saving easier.
Saving money is not always easy, especially when there are life events that are out of control. It is one of the reasons why you should set aside a fraction of your income regularly. Stick to a plan that you can follow through. Always remember that self-control is the key. Having savings also help you avoid taking out a loan that could only ruin your financial goals if you are not careful.
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